STAND. COM. REP. NO. 338

Honolulu, Hawaii

RE:    S.B. No. 1087

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Economic Development, Tourism, and Technology and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 1087 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to enable a transient accommodations broker to register as a tax collection agent with respect to transient accommodations taxes and general excise taxes for its operators and plan managers in a manner that recognizes the dynamic changes occurring in the transient accommodations sector.

     Your Committees received testimony in support of this measure from the Oahu Alternative Lodging Association, Travel Tech, AirBNB, and twenty-eight individuals.  Your Committees received testimony in opposition to this measure from the City and County of Honolulu, Kailua Neighborhood Board, Hawaii Appleseed Center for Law & Economic Justice, UNITE HERE Local 5, Rental by Owner Awareness Association, and four individuals.  Your Committees received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and two individuals.

     Your Committees find that this measure would allow internet platforms to collect and remit general excise tax and transient accommodations tax which would enable the State to generate millions of dollars in tax revenue.  Your Committees further find that this measure will also help ensure that all operators contribute their share of taxes owed to the State.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Tourism, and Technology and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1087 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Tourism, and Technology and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ GLENN WAKAI, Chair